00:00This week, of course, you have the Galaxy Unpacked event.
00:03You're announcing new devices, including three new foldable phones.
00:07And when it comes specifically to the Galaxy Z Fold 8, it's shorter and wider.
00:13It's an interesting form factor there.
00:15Talk to us why you're going the wider route with this phone.
00:18Well, yeah, the all-new Z Fold 8 is joining the family, the way I like to think about it,
00:23because it is, to your point, our third foldable device.
00:25So before, we had our flip device, which is known to be more portable,
00:29where you can easily kind of fit it in a pocket, simple, lightweight.
00:33And then our traditional fold, which is more of book type,
00:36was more about productivity and multitasking.
00:38And what we found is over the past few years,
00:42there's just been an explosion in terms of mobile video consumption, specifically.
00:46And so consumers are spending up to 80% of their screen time on their mobile device
00:51versus, say, large format devices.
00:53And so we wanted to make a new form factor that was really tailor-made
00:58towards consuming content and watching video.
01:00And so what we announced today was that new form factor.
01:03I have it here, which is our all-new Z Fold 8.
01:07And so you can see just from this screen here
01:11how it really fits content perfectly.
01:14If you go into full screen, you get much slimmer black bars, things like that.
01:19And then, of course, these days, a lot of the content consumed on mobile is vertically oriented.
01:24So it's, you know, the aspect ratio is perfect for social media reels and things like that.
01:29So it's really about that person who wants to consume a lot of content on the go,
01:34watch a lot of video on their device.
01:36The TikTok generation, if you will, or YouTube, whatever you want to call it.
01:40And it's interesting, the timing of this announcement.
01:42You're getting a jump start on Apple.
01:44The point has been made that your biggest competitor is a phone that actually doesn't exist yet.
01:50You know, Apple coming to the market with their first foldable phone later this year.
01:54So you have a head start here.
01:56How do you plan to make the most of it?
01:58Well, for us, this is our eighth generation.
02:00So this is a technology we've been refining and perfecting over the years.
02:05We really feel like last year was a big inflection point with our seventh generation,
02:09where for the first time, we were able to get the form factor down
02:12to that of just a standard bar-type smartphone.
02:15Traditionally, in years before, consumers had felt there was maybe a trade-off.
02:19I could get the bigger screen and the foldable form factor,
02:21or I could have the more lightweight, portable bar-type form factor.
02:27But now we're able to get both into a single form factor.
02:31And I think on top of the refinements that we've made year over year over year,
02:35that's led to breakthroughs in durability and portability
02:39in terms of the actual weight of the devices.
02:41These are slimmer and lighter weight than we've ever had before.
02:45So those are things that we've really tried to drive into the technology.
02:49But in addition to that, we're providing choice.
02:51Again, this is three different form factors.
02:53So on one hand, you have that ultra model,
02:56which will be our Fold8 Ultra for maximum productivity,
03:00things like multi-window and multitasking that's natural for.
03:04The one I just showed you, our Z Fold8,
03:06will be really around content consumption and perfect for gaming and watching video.
03:11And then Flip is more of that portability form factor.
03:14So we really feel like we're leading the way in terms of the innovations
03:17that have driven us to this point.
03:19And then we're able to also offer consumers choice
03:22as to what form factor is going to fit their lifestyle best.
03:24Let's talk about pricing a little bit,
03:26because my understanding of the Z Fold8, we're looking around $1,900.
03:30Correct me if I'm wrong, the Z Fold8 Ultra, maybe that's above $2,000 here.
03:36How did you arrive at these numbers?
03:39How are you balancing, of course, staying competitive,
03:41but also incorporating some of the shortages that we've seen pop up,
03:45especially when it comes to memory chips?
03:47Absolutely.
03:47I mean, look, the challenge with memory pricing is not unique to the mobile industry, to Samsung.
03:53It's impacting all consumer electronics.
03:55So that's something we've had to contend with for sure.
03:58But we've been focused on continuing to deliver innovation year over year.
04:02So if you see, say, our Fold8 Ultra, it has gone up by $100 year over year,
04:07but there's a brand new camera.
04:09There's an all-new processor that's going to be incredible for AI capability
04:14and AI processing on the device.
04:16It's, again, slimmer.
04:18And then on top of that, it has the largest battery ever in a foldable at 5,000 milliamp hour.
04:24So it's like more than a full day of battery very easily.
04:27So we're continuing to pack innovation into the product as opposed to, say,
04:31just having a higher price versus last year.
04:34And then our all-new Fold8 at that $1,899, $1,900 price point
04:40is actually a little lower than we were at last year.
04:43So Fold last year was at $1,999.
04:46So we're trying to balance the challenges with the cost increases that across industries people are having to contend with
04:54and still packing meaningful innovation for consumers that can get excited about having that next generation product.
05:00Well, it's interesting.
05:02I mean, especially when it comes to the Z Fold8, you mentioned you're actually a little bit lower than where
05:06you were previously.
05:07In April, though, you did raise the price of some configurations of the Z Fold7.
05:12There's some speculation that the prices that we're talking about today could soon conceivably go higher.
05:19And I wonder, you know, how much you've sort of built that in that idea that price hikes maybe might
05:26be an inevitability here.
05:28Yeah, I mean, it's a really unpredictable time.
05:30I've been in the mobile industry now over 20 years.
05:32And I can say firsthand, it's kind of the most unpredictable moment we've had.
05:36And that includes COVID when there was a lot of supply chain challenges.
05:39And so we're looking at that and forecasting out as best as we can to try to understand, you know,
05:45how are we able to maintain a price point and not have a lot of kind of disruption that confuses
05:51consumers and things like that.
05:52So we even look at things of how we dial back promotional activity and trade-off balances.
05:57But what we've done here today, again, is try to do it in a way where we're packing as much
06:04innovation in.
06:04It's still an accessible price point for these products without big increases year over year.
06:09And, Drew, before I let you go, I'd love to just talk about, you know, why we might be seeing
06:14this sort of back-to-the-future moment.
06:16We're going back to foldable phones in general.
06:19And, again, that shorter and wider design, it's sort of reminiscent of ghosts of foldable phones past.
06:26I wonder, you know, what it says about this moment in time that you do see this return to this
06:31sort of phone shape.
06:32To me, it's super exciting just because we've come to know the bar-type smartphone is just the traditional form
06:39factor for the last 15 years.
06:41It's gotten a little boring, you know.
06:42And so now foldable technology is able to deliver a diversity of form factors.
06:48And that's great because we all have different needs as in-consumers.
06:51I might, like, fold ultra because of the productivity.
06:54I can guarantee you my kids will, like, fold because of the video-watching experience.
06:59And then, you know, my wife might, like, flip for the portability reasons of it.
07:03And so what we're able to now offer is a diversity of form factors that dial into different consumers' needs.
07:09And I see that really only growing in the future.
07:11I think we're kind of hopefully getting to that point of a post-bar-type smartphone world where we have
07:17a lot more exciting design innovation than we've had.
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